Divorce rates have increased dramatically since the 1970s, leaving more than ever mother-led families in need of government support. However, recent 'employability' policies have tended to overlook the changing nature of the job market and the impact of marriage breakdown on personal resources, and have treated beneficiaries as gender-neutral beings without family responsibilities. In this article, the inherent conflict between restructuring and new program needs is examined, with an emphasis on programs promoting greater employability for mothers. Both partnered and lone mothers are included in the discussion because global economic trends and new program initiatives influence both categories. The analysis focuses on three 'liberal' welfare states - Australia, New Zealand and Canada.